Softcat (SCT) H2 2025 earnings summary

Executive summary

• Achieved strong double-digit growth in gross profit and underlying operating profit for FY 2025, despite ongoing macroeconomic and geopolitical uncertainty.

• Expanded customer base by 1.6% to nearly 10,200, with gross profit per customer up 16.5%.

• Completed the acquisition of Oakland, enhancing data and AI capabilities and expanding addressable market.

• Continued investment in new offices, internal technology, and headcount, supporting long-term growth.

Financial highlights

• Gross profit grew 18.3% year-over-year to £494.3 million, exceeding expectations.

• Underlying operating profit rose 16.9% to £180.1 million, excluding £7.2 million in non-underlying costs.

• Gross invoiced income increased 26.8% to £3.6 billion, with hardware up 74.5%, software up 14.8%, and services up 15.5%.

• Statutory operating profit was £172.9 million, up 12.2% year-over-year.

• Ended the year with £182.3 million in cash, up £23.8 million from prior year.

• Returned £95.7 million to shareholders and proposed a total ordinary dividend of £0.293 (up 10.2%) plus a special dividend of £0.161.

Outlook and guidance

• FY 2026 guidance: low double-digit gross profit growth and high single-digit underlying operating profit growth, excluding the exceptional FY 2025 large project contribution.

• Including the large project, FY 2026 expected to see high single-digit gross profit growth and low single-digit operating profit growth.

• Two-year CAGR (FY 2024–2026) expected at ~12% for gross profit and 9% for underlying operating profit.

• FY 2026 growth will be first half-weighted due to phasing of large deals.